This week we're continuing our Buyer Process series and giving you stage 3 of the buying process! During this phase, you will work with your realtor to have the home you want to be appraised, inspected, and begin negotiating deals!
The first step would be to go through your due diligence period. Usually, you have about 15 days. Make sure that everything is okay with the house and that you absolutely want it and can back away without penalty.
Home Inspection & Amendments
The next step would be to get your home inspection scheduled. Home inspections could range anywhere between $250 and $400 and this is a very important step. I recommend this even in a newly constructed home. It will take the home inspector anywhere
between 24 and 48 hours to give you a detailed report of all of the findings in the property. And then the realtor will present that document -- an amendment -- to address any concerns. The realtor will present that document to the other realtor
on the other side that's working with the seller. One or two days later, you will receive a response back from the seller saying, "Yes, we will agree to fix everything", or "No, we agree to fix these items, but not these". And at that
point, you and your realtor will pretty much be back in negotiation until you come up with an agreement between you and the seller.
Then after you're in agreement with everything, your lender will order an appraisal. The reason why we prefer to wait until after the repairs have been addressed with the seller is because you don't want to spend the money on an appraisal
just to find out that you're going to back away because the seller didn't agree to make repairs. An appraisal will cost you about $400. The listing agent will then figure out if whatever sold within the last six months in that neighborhood
is equal to or greater than the amount that you are paying for the property. If for whatever reason the sales or the comps do not support the price that you're buying the home, then you will have to once again negotiate with the seller and
figure out if either they're going to lower their price to meet what the appraiser says or if you will be willing to make up the difference for that.
So keep all these tips in mind during the third stage of your buying process and don’t be afraid to ask your realtor questions and get a full understanding of what’s going on. Be sure to visit our YouTube channel
the full video! If you're constantly on the go, you can listen to monthly market update each month on our podcast through Spotify
, and Google Play Music.